Correlation Between Ames National and Medallion Financial
Can any of the company-specific risk be diversified away by investing in both Ames National and Medallion Financial at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Ames National and Medallion Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ames National and Medallion Financial Corp, you can compare the effects of market volatilities on Ames National and Medallion Financial and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Ames National with a short position of Medallion Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ames National and Medallion Financial.
Diversification Opportunities for Ames National and Medallion Financial
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ames and Medallion is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Ames National and Medallion Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Medallion Financial Corp and Ames National is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Ames National are associated (or correlated) with Medallion Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Medallion Financial Corp has no effect on the direction of Ames National i.e., Ames National and Medallion Financial go up and down completely randomly.
Pair Corralation between Ames National and Medallion Financial
Given the investment horizon of 90 days Ames National is expected to generate 0.53 times more return on investment than Medallion Financial. However, Ames National is 1.88 times less risky than Medallion Financial. It trades about 0.13 of its potential returns per unit of risk. Medallion Financial Corp is currently generating about -0.01 per unit of risk. If you would invest 2,008 in Ames National on September 7, 2025 and sell it today you would earn a total of 202.00 from holding Ames National or generate 10.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ames National vs. Medallion Financial Corp
Performance |
| Timeline |
| Ames National |
| Medallion Financial Corp |
Ames National and Medallion Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ames National and Medallion Financial
The main advantage of trading using opposite Ames National and Medallion Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ames National position performs unexpectedly, Medallion Financial can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Medallion Financial will offset losses from the drop in Medallion Financial's long position.| Ames National vs. CarsalesCom Ltd ADR | Ames National vs. Salesforce | Ames National vs. 51Talk Online Education | Ames National vs. Bankwell Financial Group |
| Medallion Financial vs. Puhui Wealth Investment | Medallion Financial vs. Atrium Mortgage Investment | Medallion Financial vs. Apartment Investment and | Medallion Financial vs. Vinci Partners Investments |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Global Correlations module to find global opportunities by holding instruments from different markets.
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